Rental Management 101: Introduction to Rental-Module 3: Dealers Need Rental

Module 3: Dealers Need Rental - Part 5

Video Transcription

Video Summary

Dealerships should consider engaging in rent-to-rent business as customers are increasingly demanding it. The traditional dealer business model of parts, sales, and service is under pressure, as margins on new equipment sales continue to decrease. Rent-to-rent allows dealerships to have more customers and higher gross margins. It also provides a sustainable source of used equipment, allows for positioning with emerging contractors, and acts as a leveraged approach to reach small customers. Additionally, factors like lower sales coverage costs, changes in engine design, conservation of capital, equipment specialization, and customer preference for renting rather than buying all contribute to the need for dealerships to embrace rent-to-rent.

Keywords

rent-to-rent business

customer demand

dealer business model

gross margins

used equipment